Criteria For Employee Layoffs

Employees are generally laid off from the company due to a variety of reasons. While some of them are related to the volatile market conditions, others may be related to the performance or the behavior of the employee in the organization.

Sometimes, companies may wish to downsize their organization in which case, they need to choose some of the employees for lay-off. If this process lacks the required etiquettes either on the part of the employee or the employer, the consequences are bitter as well as painful.

The company should first consider the legal impact of the layoff. Sometimes, an employee cannot be forced out of employment without any valid reason. The affected victims should be provided additional benefits. The employer also needs to explain the reason for taking such drastic steps. It is better to consult a legal attorney to carry out this process in order to avoid any hassles in the future.

As per the laws in the US, employees can file a suit against the organization in case the employer does not issue a notice of mass layoffs at least 2 months in advance. In addition, the employer should not curb any benefits for the employees even during the notice period.

The final settlement should not be as per the severance pay but as per the Worker Adjustment and Retraining Notification (WARN) Act. This act may not be valid for employees under probation.

Generally, the most affected victims during the layoff period are the employees who have the least amount of experience. Senior employees have a better advantage and terminal benefits during such mass layoffs.